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DS145: Argentina — Countervailing Duties on Imports of Wheat Gluten from the European Communities

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Complainant: European Communities  Respondent: Argentina  Agreements cited:  Art. 10, 11.11  Subsidies and Countervailing Measures (SCM) Consultations requested:  23 September 1998

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The European Communities has demanded consultations with Argentina over supposed definitive countervailing duties levied by Argentina on EC wheat gluten imports. Argentina levied a countervailing duty on wheat gluten imports from the EC, according to the EC, with effect from July 23, 1998.

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The investigation that led to the imposition of these duties began on October 23, 1996, and the EC claimed that the investigation took longer than 18 months, in violation of Article 11.11 of the Subsidies Agreement. The EC also alleged that Article 10 of the same Agreement had been breached.

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The complainant requests consultations with the respondent, that no dispute panel be established, and that no withdrawal or mutually agreed solution be notified.

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An import tax levied on specific goods to prevent dumping or counteract export subsidies.

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AGREEMENT ON SUBSIDIES AND COUNTERVAILING MEASURES

Article 10:  Application of Article VI of GATT 1994  Members shall take all necessary steps to ensure that the imposition of a countervailing duty on any product of the territory of any Member imported into the territory of another Member is in accordance with the provisions of Article VI of GATT 1994 and the terms of this Agreement. Countervailing duties may only be imposed pursuant to investigations initiated and conducted in accordance with the provisions of this Agreement and the Agreement on Agriculture.

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Article 11.11:  Investigations shall, except in special circumstances, be concluded within one year, and in no case more than 18 months, after their initiation.

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When a member government suspects another member government is breaking a WTO agreement, a conflict occurs. A "request for consultations" must be made by the complaining member, outlining the agreements it claims are being breached.

WORLD TRADE ORGANIZATION CASE (WTO)

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